Bitcoin price drops as traders warn BTC could drop below $ 55,000

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Bitcoin (BTC) barely recouped its losses on April 9 as new doubts emerged about the continuation of the bull run this month.

1 hour candle chart BTC / USD (Bitstamp). Source: Tradingview

$ 56,760 “not a convincing background”

After slipping 5% on Wednesday, BTC / USD saw only a slight rebound to surround $ 57,000 at the time of writing, TBEN Markets Pro and TradingView showed.

Following multiple failed attempts to break resistance near all-time highs, analysts were wary of a further decline and a temporary halt to further price increases.

Filbfilb, co-founder of the Decentrader trading suite, described the current low of $ 56,760 this week as “an unconvincing bottom”.

BTC financing rate. Source: Bybt.com

As reported on Wednesday, funding rates across trading platforms call for a removal of leveraged long positions from overly bullish ones. For Filbfilb, these rates remain “far too high”, he told subscribers of his Telegram trading channel.

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Popular Twitter trader Cantering Clark meanwhile sharp Bitcoin’s 20-week moving average (MA) – a classic “line in the sand” for price performance – which still persists at around $ 40,000.

“More fuel as to why I think April-May is putting a lid on $ BTC until later in the year,” he commented on a comparison chart.

“As simple as it sounds, this 20 week MA with a 2 SD band over it. At some point, these meet. Either it’s coming to us or we’re getting there. Hard to imagine that it takes up more space. “

The macro becomes favorable to Bitcoin bulls

Despite continued institutional interest in recent weeks, fueled by further major adoption announcements from banks, signs of a slowdown were also starting to appear that day.

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The Purpose Bitcoin ETF saw a slight reduction in its BTC holdings after steady growth, with its assets under management falling in tandem from $ 976 million to $ 944 million.

His colleague at the institutional portal Grayscale’s Bitcoin Trust (GBTC) maintained its negative premium, a phenomenon that has benefited from the continued accumulation of Bitcoin since February.

GBTC prices, titles and premium chart. Source: Bybt

But not everyone was totally gloomy. For Crypto trader Ed, the ultimate market trajectory was clear.

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“In no hurry to get into position,” he Told Twitter followers Thursday.

“54k first or more from here, both mean we’re entering a solid 3rd leg and a lot of benefits ahead of us. BTC will break 60k and eventually go much higher. “

US Dollar Currency Index (DXY) 1 hour candle chart. Source: Tradingview

Beyond crypto, a favorable outlook for US stock markets coupled with a weaker dollar could still serve Bitcoin’s near-term goal.

“With surplus savings, new stimulus economies, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic … the US economy is going. likely explode, ”JPMorgan CEO Jamie Dimon said in his annual newsletter to shareholders earlier this week.